Dusseldorf US equity investors are nervous about the increasing number of new corona infections. In six US states, there was a record increase in new infections within a day. Apple has announced that it will close some of its stores again.
In early trading, the stock exchanges had benefited from positive signals in the trade dispute between the USA and China and rising oil prices, and the trend was stronger. Expiring futures and options contracts on the futures exchanges also contributed to price fluctuations in the course of trading.
The Dow Jones index of standard values fell 0.8 percent to 25,871 points from trading. The technology-heavy Nasdaq hardly changed at 9946 points. The broad S&P 500 lost 0.6 percent to 3097 points.
After the recent setbacks in the fight against the spread of the corona virus, US investors initially seemed to have gained new courage at the start of trading, betting that the government and central bank could get the economy back on track.
But the pandemic is far from over, the fear of a second wave remains in the back of the mind. A quick relapse is more likely, analysts expect a range between 22,700 and 28,200 points with regard to the price development of the Dow Jones index.
The number of infections in the United States rose by 23,138 to 2,178 million, according to the Centers for Disease Control (CDC). In addition, 733 other deaths were recorded, bringing the total to 118,365.
Apple has announced plans to close some of its U.S. stores in Arizona, Florida, and North and South Carolina. The iPhone manufacturer’s share fell half a percent.
However, the hope of a rapid economic recovery initially prevented major price losses on the overall market. “We expect share prices to continue to rise, driven by a very aggressive monetary easing, fiscal aids and the continued reopening of the global economy with some temporary setbacks,” said strategist Sebastien Galy from asset manager Nordea Asset Management.
“Many indicators cry out for overvaluation of the market”
A ray of hope: US investors hope that the waves between the United States and China will level off given the recent trade negotiations. China is planning to accelerate the purchase of American agricultural goods in order to comply with the phase one trade agreement with the United States following the talks in Hawaii this week.
In the so-called phase one part, the USA and China had committed themselves not to impose new tariffs. China also promised to buy additional US goods valued at approximately $ 200 billion over the next two years, including $ 40-50 billion worth of agricultural goods, according to the US government.
However, China only bought $ 4.65 billion worth of agricultural goods in the first four months of the year, according to data from the U.S. Department of Agriculture. That is only 13 percent of the target set in the trade agreement and almost 40 percent less than in the same period in 2017.
Earlier this month, Chinese government officials said insiders had responded to rising tensions over Hong Kong by ordering large state-owned agricultural companies to stop buying some American agricultural goods, Bloomberg reported.
However, Chinese importers have continued to increase their soy purchases in the United States, harvesting 2.2 million metric tons of the oilseed in the two weeks to June 11, according to data from the US Department of Agriculture.
China now plans to accelerate purchases of everything from soybeans to corn and ethanol after purchases have stalled due to coronavirus disruption, Bloomberg said, referring to people familiar with the matter.
On Thursday, US Secretary of State Michael Pompeo said that China’s top foreign policy official has committed to honor all of its nation’s commitments under the trade agreement.
Focus on individual values
Due to the negative news about the Coronavisrus pandemic, US airline stocks were again under particular selling pressure. United Airlines dropped 6.4 percent, Delta Air Lines fell 4.2 percent, and American Airlines lost 3.0 percent.
The Microsoft papers reached another high of $ 199.29 in the course. This broke the $ 1.5 trillion mark for the first time. Except for Apple, no company has yet succeeded. Ultimately, however, the software company’s shares lost 0.6 percent to $ 195.15, falling below the 1.5 trillion mark in market capitalization.
The Tesla papers lost 0.3 percent. The US electric car manufacturer wants to quickly open a new plant in his home country. Construction on the planned factory in Travis County, Texas, is slated to begin this summer. So far, Tesla has only one car factory in the United States. Another plant was opened in Shanghai, one is planned in Grünheide near Berlin.
A Goldman Sachs sell recommendation for Slack Technologies pushed the company’s online office communications stock down 3.2 percent. Slack had received short-term tailwind from the home office trend, but Microsoft is threatening considerable competition, it said.
With agency material
More: This is how the trading day on the Frankfurt Stock Exchange went.